In the "Executive Decision" segment, Cramer spoke with Peter McCausland, president and CEO of Airgas (ARG_), a company that has been under siege by a hostile takeover bid from Air Products (APD_). After a year long fight, the Air Products bid was finally defeated today.
McCausland said Airgas has a long term business plan that creates value well in excess of the bid that was unanimously rejected by its board of directors. He said pre-recession, Airgas had sales of $4.5 billion, but this quarter the company is expected to beat its 2008 highs on $300 to $400 million less in sales, thanks to higher margins.
With the takeover now dead, McCausland also said the company has instituted a $300 million stock buyback program to help stabilize the stock and facilitate the exit of short term investors that were betting on the deal. He said with the takeover fears lifted, Airgas will be able to reach the consensus targets of $72 to $76 a share. Cramer, a long time champion of McCausland and of Airgas, said that company is a buy, now that the takeover, which had been capping the stock's performance for months, has been lifted.
News Breaks February 17, 2011 05:09 EDT ARG theflyonthewall.com: Jim Cramer's "Mad Money" Jim Cramer recounted why he purchased shares of John Deere (DE) a few months ago for his charitable trust -- High grain prices mean farmers buy more tractors. That theory proved to be true Wednesday, when shares of Deere rallied over $2 on a blowout quarter. Stocks like Deere have pricing power, he said, and can overcome any obstacles - like a negative Wall Street Journal article -- in their way. Others with pricing power include mining equipment makers, like Joy Global (JOYG) and Bucyrus (BUCY), and oil rig suppliers such as National Oilwell Varco (NOV), Cramer said. EXECUTIVE DECISION: Cramer spoke with Peter McCausland, president and CEO of Airgas (ARG). With the Air Products (APD) takeover now dead, Airgas has instituted a $300M stock buyback program to help stabilize the stock and facilitate the exit of short term investors that were betting on the deal.>>>>>>> McCausland said with the takeover fears lifted, Airgas will be able to reach the consensus targets of $72-$76 a share. <<<<<<<<<<<Cramer, a long time champion of McCausland and of Airgas, said that company is a buy. Next, Cramer spoke with Sean Boyd, vice chairman and CEO of Agnico-Eagle Mines (AEM), a stock that's been under pressure as of late, as gold prices have been taking a breather from record runs. Cramer said with the long term trend of gold intact, he remains bullish on the company and the commodity. NO HUDDLE OFFENSE: Cramer commented on the surprise departure of Wells Fargo (WFC) CFO Howard Atkins, calling on the SEC to act and act now to get to the bottom of the departure. CLOSING COMMENTS: Cramer said that Joy Global, Williams (WMB) and Cliffs Natural Resources (CLF) are all going higher, and investors shouldn't sell any of them. LIGHTNING ROUND: (Bullish) DD; HCBK; USB; EPD; EMC; CVX; COP. (Bearish) TZOO; PWER. Reference Link :theflyonthewall.com